PRINCIPLES OF ACCOUNTS
|
|
- Dominic Potter
- 5 years ago
- Views:
Transcription
1 PRINCIPLES OF ACCOUNTS GCE Ordinary Level (2017) (Syllabus 7175) CONTENTS Page INTRODUCTION 2 AIMS 2 ASSESSMENT OBJECTIVES 3 SCHEME OF ASSESSMENT 4 USE OF CALCULATORS 4 SYLLABUS OUTLINE 5 SUBJECT CONTENT 7 APPENDICES 40 Singapore Examinations and Assessment Board MOE & UCLES
2 INTRODUCTION Accounting is an information system based on generally accepted accounting principles. It involves the recording and processing of business transactions, and communicating the information to stakeholders. The accounting information is used to evaluate business performance and facilitate decision-making. What sets the accountancy profession apart is the responsibility to act in the public s interest. Principles of Accounts (syllabus code 7175) is designed to provide students with a meaningful basic introduction to financial accounting and to develop an appreciation of the discipline of accounting. It is grounded in preparing, communicating and using financial information, and appreciating the need for ethical conduct. The subject places emphasis on the understanding and application of accounting knowledge to develop lifelong skills and values that will be of value in the increasingly complex world of business. This subject forms part of a broad-based education to equip students with strong fundamentals for future learning. It is offered as an elective subject at Secondary Three and examinable at the GCE Ordinary Level. AIMS It is the intent of this syllabus that students develop the abilities to prepare, communicate and use accounting information. (i) As preparers of accounting information, students are to develop an understanding of the elements, theories and procedures of accounting; an understanding of the accounting information system; the skills of recording, organising, summarising and analysing business transactions; (ii) As communicators of accounting information, students are to develop an understanding of how accounting information is being presented; the skills of presenting quantitative accounting information; (iii) As users of accounting information, students are to develop an understanding of how accounting information is being used; and the skills of analysing, interpreting and evaluating business performance and status. In the learning process, students will develop an understanding of the importance of professional ethics. 2
3 Knowledge and understanding The syllabus intends for students to develop knowledge and understanding of: the general environment that accounting operates in, particularly about the stakeholders, professional ethics, business context and accounting theories the accounting information system and the methodology used to collate, record, organise and summarise the information the elements of the financial statements, and the practices and procedures applied on them the basic financial statements, their preparation and the information they convey the basic forms of business entities, and the practices and procedures applied to represent the owner s or owners interests the use of financial information and financial ratios for evaluation of profitability, liquidity and inventory management Skills The syllabus intends for students to develop the skills of: applying the double entry system of recording business transactions organising and presenting accounting information in ledger accounts and financial statements analysing the effects of accounting transactions on financial statements analysing and interpreting financial statements evaluating businesses for their profitability, liquidity and inventory management using financial information and ratios Values and attitudes The syllabus intends for students to develop the values and attitudes of: integrity and objectivity social responsibility, through the context of accounting and how it can affect users of financial information being logical, methodical, consistent and accurate being interested in accounting and aware of further pathways in accounting ASSESSMENT OBJECTIVES Students should be able to: AO1 AO2 AO3 AO4 Knowledge and Comprehension Identify and comprehend accounting knowledge appropriate to the syllabus. Application Select and apply accounting knowledge to various accounting situations. Analysis and Synthesis Analyse, interpret, organise and synthesise accounting information. Evaluation Interpret and evaluate accounting information to make judgements and recommendations. 3
4 SCHEME OF ASSESSMENT There are two compulsory papers. Details Weighting Duration Paper 1 Answer 3 to 4 compulsory structured questions. (40 marks) 40% 1 hour Paper 2 Section A (48 marks) Answer 3 compulsory structured questions. One question will be on the preparation of financial statement, which carries 20 marks. The remaining two questions average 14 marks. Section B (12 marks) Answer any 1 out of 2 structured questions. 60% 2 hours Candidates will write their answers on the question paper in Paper 1. They will be provided with multi-column accounting paper for answering questions in Paper 2. Assessment specification grid The following weighting of the assessment objectives gives an indication of their relative importance. They are not intended to provide a precise statement of the number of marks allocated to particular assessment objective. AO1 Knowledge and Comprehension AO2 Application AO3 Analysis and Synthesis AO4 Evaluation Total Paper 1 15% 10% 10% 5% 40% Paper 2 10% 20% 20% 10% 60% Total 25% 30% 30% 15% 100% USE OF CALCULATORS The use of a calculator as approved by the Singapore Examinations and Assessment Board is allowed for both papers. 4
5 SYLLABUS OUTLINE Section 1: The Roles of Accounting Understanding the general environment that accounting operates in. In particular, the roles of accounting, the stakeholders, the importance of professional ethics, the business context of accounting and the theories that underline accounting practices. 1.1 Accounting and Book-keeping 1.2 Roles of Accounting 1.3 Stakeholders 1.4 Professional Ethics 1.5 Profit-making Entities 1.6 Forms of Entities 1.7 Accounting Theories Section 2: The Accounting Information System Understanding the methodology that applies to the collation, recording and organisation of accounting information. These include the representations of business transactions, and the components and workings of the accounting information system. 2.1 Elements of Financial Statements 2.2 Double entry Recording 2.3 Accounting Equation 2.4 Journal Entry 2.5 Ledger Account 2.6 Accounting System and Accounting Cycle 2.7 Source Documents 2.8 Journals 2.9 Cash Book 2.10 Special Journals 2.11 General Journal 2.12 Petty Cash Book 2.13 General and Subsidiary Ledgers 2.14 Trial Balance 2.15 Bank Reconciliation Section 3: Elements of the Financial Statements Understanding the accounting practices and procedures applied to business activities in trading and services. The practices and procedures that impact on income, expenses, trade receivables and payables, inventories, non-current assets, long-term borrowings, as well as the correction of any error. 3.1 Sales Revenue, Other Income, Cost of Sales and Expenses 3.2 Balance Day Adjustments 3.3 Trade Receivables 3.4 Inventories 3.5 Trade Payables 3.6 Control Accounts 3.7 Capital and Revenue Expenditure 3.8 Non-current Assets 3.9 Sale of Non-current Assets 3.10 Long-term Borrowings 3.11 Correction of Errors 5
6 Section 4: The Financial Statements Understanding the preparation of the financial statements and the significance of financial results and status. The financial statements involved are the income statement and balance sheet only. 4.1 Balance Sheet 4.2 Income Statement 4.3 Incomplete Records Section 5: Business Entities Understanding the practices and procedures applied to represent the owner s interest in the entities of sole proprietor and limited company only. 5.1 Sole proprietorship 5.2 Limited Company Section 6: Financial Statements Analysis Understanding the use of financial ratios to analyse financial results and status. 6.1 Financial Analysis 6.2 Profitability 6.3 Liquidity 6.4 Inventory Management 6
7 SUBJECT CONTENT 1. THE ROLES OF ACCOUNTING Understanding the general environment that accounting operates in. In particular, the roles of accounting, the stakeholders, the importance of professional ethics, the business context of accounting and the theories that underline accounting practices. 1.1 Accounting and Book-keeping Definition of accounting: recording, analysing, summarising, interpreting and communicating an entity s activities Book-keeping and accounting 1.2 Roles of Accounting Stewardship The stewardship role How it leads to the setting up of an accounting system to collate, record, organise and report financial information Decision-making Use of accounting information for decision-making by internal and external users Internal stakeholders: analysing, monitoring and controlling the performance of the business, and planning External stakeholders: analysing and evaluating the performance of the business define book-keeping define accounting distinguish between book-keeping and accounting state the roles of accounting explain how the stewardship role leads to the creation of the accounting system explain how accounting information is used for decisionmaking 7
8 1.3 Stakeholders Users of accounting information: owners, suppliers (creditors), bankers, customers (debtors), employees and government Other parties: potential investors, competitors and increasingly, the general public Decisions that each stakeholder makes, and the accounting information he would need Examples of accounting information needed are: profit for the period, assets (current assets, cash, etc.), borrowings, etc. Examples of analysis carried out by stakeholders: comparison and trend of accounting information and financial ratios 1.4 Professional Ethics Principles of professional ethics are: (i) integrity and (ii) objectivity Integrity is being straightforward and honest in all professional and business relationships Objectivity is not letting bias, conflict of interest or undue influence of others to override professional judgement Responsibility of the preparer to adopt professional ethical practices in the preparation and presentation of accounting information to fulfil the roles of accounting. Include only the effects of unethical behaviour on decisions made by stakeholders Legal consequences of unethical behaviour are not required state the stakeholders who are interested in the affairs of the business state the accounting information needed by the stakeholders explain why stakeholders are interested in accounting information define integrity and objectivity explain the importance of having integrity and being objective in the preparation and presentation of accounting information Note: The Institute of Certified Public Accountants of Singapore Code of Professional Conduct and Ethics states five principles that a member is to comply with. The first two principles are integrity and objectivity. 1.5 Profit-making Entities Main business activities of profit-making businesses: trading and service Difference between the business activities of trading and service businesses as seen on the Balance Sheets and Income Statement: the trading portion of the Income Statement, the presence of inventory, the types of income and expenses, etc. distinguish between financial statements of businesses in trading and services 8
9 1.6 Forms of Entities Forms of entities: sole proprietorship, partnership and limited company Differences in terms of: capital structure, extent of liability and management of business Differences in the Balance Sheets and Income Statements only for sole proprietorship and limited company Advantages and disadvantages between sole proprietorship and limited company only Legal formations of business entities are not required. Knowledge of Board of Directors and Annual General Meeting are not required A basic understanding that the sole proprietor usually manages the business himself while limited company is usually managed by professionals is sufficient 1.7 Accounting Theories Accounting theories and their implications on the preparation and presentation of Balance Sheet and Income Statement Theories: accounting entity (business entity) monetary accounting period going-concern historical cost consistency materiality objectivity prudence matching accrual distinguish between financial statements of sole proprietorship and limited company explain the advantages and disadvantages of sole proprietorship and limited company define each accounting theory identify the accounting theory applied in a given scenario explain how each accounting theory affects the preparation and presentation of financial statements Accounting theories applicable to each accounting element are mainly laid out in Section 3 and 4. Some accounting theories apply to the entire preparation of the financial statement and are not specific to any accounting element. Examples: accounting period, monetary, objectivity, etc. 9
10 2. THE ACCOUNTING INFORMATION SYSTEM Understanding the methodology that applies to the collation, recording and organisation of accounting information. These include the representations of business transactions, and the components and workings of the accounting information system. 2.1 Elements of Financial Statements All business activities are represented by these elements: asset, liability, equity, income and expense, and their examples To understand how the trade of the business affects the classification of items To distinguish between (i) inventory and non-current assets, and (ii) expenses and non-current assets An expense to a business may be an income to another 2.2 Double entry Recording Double entry effects of recording 2.3 Accounting Equation Basic accounting equation of assets = equity + liabilities, and its expansion to include income and expenses The accounting equation is the basis of the Balance Sheet Accounting transactions for analysis are limited to those covered in this syllabus only define assets, liabilities, equity, profit, income and expenses give examples of assets, liabilities, income and expenses for a specific business classify elements according to assets, liabilities, equity, income and expenses state the double entry recording rule state the basic accounting equation calculate the values of assets, liabilities and equity using the accounting equation apply the accounting equation to the Balance Sheet analyse the effects of accounting transactions on the accounting equation 10
11 2.4 Journal Entry Double-entry recording method: the accounts to be debited and credited, and the value Representation of double-entry effects in journal entries Journal entries are prepared from business transactions Accounting transactions are limited to those covered in this syllabus only Journal entries to transfer income and expenses to the trading account and profit and loss account are not required 2.5 Ledger Account Posting of transactions from journal entries to ledger accounts Representation of the double entry effects in ledger accounts Format of ledger: (i) T format, or (ii) columnar format. Use of folio column is not required Examination question showing any ledger account will be presented in both the T and columnar formats. Answer to examination question requiring any ledger account can be prepared using either the T or columnar format For answering examination question, only the beginning and ending balances in the running total column in the columnar format need to be shown state the accounts to be debited and credited prepare journal entries prepare ledger accounts interpret the transactions recorded and the balances in ledger accounts Ledger accounts are prepared from (i) business transactions, or (ii) journal entries Understanding transactions in relation to the nature of the ledger account they either increase or decrease the account value Understanding of beginning and ending ledger balances they represent the cumulative values to date Ledger accounts are limited to those covered in this syllabus only Closing of income and expenses to the trading ledger account, and profit and loss ledger account are required to be shown on the income and expense ledger accounts whenever relevant to the question 11
12 2.6 Accounting System and Accounting Cycle Accounting system comprises: source documents, journals, general and subsidiary ledgers, Trial Balance, Balance Sheet and Income Statement Purpose of each stage of the accounting system is in the respective topics of source documents, special and general journals, etc. state the order of how each type of accounting transaction is processed through the accounting system explain how each type of accounting transaction is processed through the accounting system The accounting cycle is the processing of accounting transactions through the accounting system It involves the classification of accounting transactions and their processing through the accounting system 2.7 Source Documents Purposes of source documents (in general) Types of source documents: receipts and cash register slip, cheque, payment voucher, invoice, credit note, debit note, petty cash voucher and bank statement Details of the content on the documents are not required Types of accounting transactions recorded in each type of document The issue and receipt of documents in relation to seller/provider and buyer/consumer of goods/services state the purposes of source documents state the source documents used in accounting transactions state the purpose of each type of source document identify the journals into which the source documents are recorded Recording of source document in the special journals or general journal or cash book Details of how the source documents are recorded in the books are not required 2.8 Journals Comprises the cash book, special journals and general journal Purposes of using cash book, special journals and general journal in general explain the purposes of using journals and cash book state the journals used to record accounting transactions Types of accounting transactions recorded in cash book, special journals and general journal 12
13 2.9 Cash Book Types of accounting transactions recorded in the cash book Cash book comprises cash in hand and cash at bank accounts Accounting for cash receipts and payments Cash at bank account reflects the amount placed with the bank for safe keeping The use of cheque and how dishonoured cheque happens Accounting for dishonoured cheque, with and without cash discount previously provided/received Bank overdraft and its classification on the Balance Sheet Recording of accounting transactions in the cash book is not required Recording of accounting transactions in individual cash in hand and cash at bank ledger accounts are required Posting of recorded transactions in a 3-column cash book to the general and subsidiary ledgers, and affected ledger accounts How the details and aggregate in the cash book are posted Use of folio column is not required Understanding how entries recorded in the cash book impact the financial statements Purpose of cash discount, when it is given and its calculation at receipt and payment The application of trade and cash discounts Accounting of discount allowed and received explain the purpose of the cash book state the causes of dishonoured cheque prepare journal entries for dishonoured cheque prepare the cash in hand and cash at bank ledger accounts for the current financial period state the general and subsidiary ledgers posted to from the transactions in the cash book prepare the relevant ledger accounts based on transactions recorded in the cash book for the current financial period interpret transactions recorded and the balances in the cash book prepare an extract of the Balance Sheet showing the presentation of cash at bank and bank overdraft define cash discount explain why cash discount is given/received distinguish between trade and cash discounts calculate cash discount at receipt and payment prepare journal entries after cash discount analyse the effects of providing/receiving cash discount on profit for the period and trade receivables/trade payables 13
14 2.10 Special Journals Special journals: sales journal, sales returns journal, purchases journal and purchases returns journal Types of accounting transactions recorded in each special journal Recording of accounting transactions in the special journals are not required Posting of transactions from the special journals to the general and subsidiary ledgers, and affected ledger accounts How the details and aggregate in the special journals are posted Use of folio column is not required Purpose of trade discount, when it is applied and its calculation at purchase of, sale of and return of goods explain the purpose of each special journal state general and subsidiary ledgers posted to from each special journal interpret the special journal for items posted to the ledger accounts define trade discount explain why trade discount is given/received calculate trade discount at purchase of, sale of and return of goods calculate amounts recorded in the special journals calculate amounts recorded in the affected ledger accounts prepare journal entries for credit purchases and sales of goods, including their returns 2.11 General Journal Types of accounting transactions recorded in the general journal are: opening and closing entries; and accounting transactions that are not recorded in the special journals and cash book, e.g. correction of errors, credit purchase and sale of non-current assets, non-cash capital contribution and drawings, adjustments for accruals/ prepayments/depreciation/allowance for impairment of trade receivables, declared dividend, transfer of profit/loss to capital or retained earnings, etc. Journal entries to transfer income and expenses to the trading account and profit and loss account are not required state examples of accounting transactions recorded in the general journal explain the purposes of general journal explain the purpose of providing narration Recording of accounting transactions in the general journal. Writing narration and its purpose Use of folio column is not required 14
15 2.12 Petty Cash Book Purposes of maintaining a petty cash fund Workings of the imprest system as a control over petty cash Understanding and computing (i) reimbursement to restore to the float /imprest amount, and (ii) float /imprest amount Relationship between petty cash book and cash book for reimbursement to restore the imprest amount. To include: imprest at the beginning or end of the period Both the recording and posting of business transactions in the petty cash book are not required 2.13 General and Subsidiary Ledgers Purposes of using the subsidiary ledgers of purchases and sales ledgers Types of accounting transactions recorded and the types of ledger accounts in the general and subsidiary ledgers Relationship between the subsidiary ledgers and the general ledger explain the purposes for a petty cash fund explain the workings of imprest system state the advantages of the imprest system calculate the reimbursement required to restore to the float or imprest amount calculate the float /imprest amount explain the relationship between the petty cash book and cash book state the types of accounting transactions recorded in the general and subsidiary ledgers state the types of ledger accounts in the general and subsidiary ledgers explain the purposes of using subsidiary ledgers 15
16 2.14 Trial Balance Definition of Trial Balance Main purpose of Trial Balance as a check on arithmetic accuracy Format and features of a Trial Balance Limitation of Trial Balance as an absolute proof of accuracy Errors not revealed by a Trial Balance and their examples: compensating errors complete reversal of entries errors of commission errors of omission errors of original entry errors of principle define the Trial Balance explain the purpose of Trial Balance explain the limitations of Trial Balance prepare a Trial Balance state errors not revealed by a Trial Balance explain how errors not revealed by a Trial Balance happen Errors revealed by a Trial Balance are not required 16
17 2.15 Bank Reconciliation Main purpose of preparing bank reconciliation: check the cash at bank balance of the business against the bank s record as shown on the bank statement Reconciliation of differences between the business cash at bank balance and the balance on the bank statement Differences are due to timing of transactions being recorded by the business and the bank, as well as errors in recording by any of the two parties Types of differences are: (i) direct deposits, (ii) direct payments, (iii) cheques not yet presented, (iv) cheques not yet credited/deposits not yet credited/deposits in transit and (v) dishonoured cheques Understanding how electronic bank transactions (e.g. credit transfer, standing order, etc.) are recorded in the accounts of the business is required but descriptions of their processing are not required Adjusting the cash at bank ledger account Format and features of a bank reconciliation statement Scenarios to include: (i) same opening balance between business cash at bank and bank statement, (ii) different opening balance between business cash at bank and bank statement and the difference is limited to only one transaction, (iii) ending overdraft in business cash at bank, (iv) ending overdraft in bank statement Question must include extracts of bank column from the cash book and bank statements explain the purpose of preparing bank reconciliation identify what the differences between the business cash at bank balance and the balance on the bank statement comprise of explain the causes of differences between the business cash at bank balance and the balance on the bank statement prepare an adjusted cash at bank ledger account prepare the bank reconciliation statement analyse the effects of adjusting for the differences between the business cash at bank balance and the balance on the bank statement on cash at bank and profit for the period 17
18 3. ELEMENTS OF THE FINANCIAL STATEMENTS Understanding the accounting practices and procedures applied to business activities in trading and services. The practices and procedures that impact on income, expenses, trade receivables and payables, inventories, non-current assets, long-term borrowings, as well as the correction of any error. 3.1 Sales Revenue, Other Income, Cost of Sales and Expenses Accounting for sale of goods, provision of services on cash and credit terms, and returns of goods or allowances on unsatisfactory services Accounting for cost of sales for trading business Accounting for other income items received in cash, income earned not received and received income not earned yet Examples: rent, commission, etc. Exclude dividend Accounting for other expense items paid by cash, the expired portion of expense, and incurrence of expense not paid yet Examples: insurance, office expenses, rates, rent, salaries, wages, etc. Presentation of sales revenue, sales returns and cost of sales on the Income Statement for a trading business Presentation of fee income on the Income Statement for a service business Accounting theories which apply to the accounting of income and expenses prepare the journal entries for transactions affecting sales revenue, sales returns, fee income, cost of sales, other income items and other expense items prepare the sales revenue, sales returns, fee income, cost of sales, other income and other expense ledger accounts for the current financial period prepare an extract of the Income Statement showing the presentation of sales revenue, sales returns and cost of sales for a trading business for the current financial period prepare an extract of the Income Statement showing the presentation of fee income for a service business for the current financial period explain the accounting of sales revenue, other income and expenses in relation to relevant accounting theories 18
19 3.2 Balance Day Adjustments Calculation and accounting of prepaid expenses, accrued expenses/expenses payable, income received in advance/unearned income and income receivables Concepts: (i) expired/consumed and unexpired/unconsumed portions of expenses, (ii) expenses incurred not paid yet, (iii) earned and unearned portions of income, (iv) income earned not received yet, and (v) accrual basis of accounting Accounting practice required: Balance day adjustments are to be made against separate prepaid expense, accrued expense, income received in advance and income receivable ledger accounts Prepaid expenses and income receivables are shown as current assets on the Balance Sheet Accrued expenses and income received in advance are shown as current liabilities on the Balance Sheet No outstanding balances in the income and expense ledger accounts Scenarios to include: (i) only one financial period with opening and/or closing prepaid expenses, accrued expenses, income received in advance and income receivables, (ii) amounts paid and received are recorded as income and expenses at the points of payments and receipts, and any unexpired or unearned portions are adjusted at the end of the financial period Accounting theories which apply to the adjustments for prepaid expenses, accrued expenses, income received in advance/unearned income and income receivables calculate the amounts adjusted for prepaid expenses, accrued expenses/expenses payable, income received in advance/unearned income and income receivables for the current financial period calculate the amounts for income and expenses for the Income Statement for the current financial period prepare the journal entries showing the adjustments for prepaid expenses, accrued expenses/expenses payable, income received in advance/unearned income and income receivables prepare the income and expense ledger accounts showing the adjustments for prepaid expenses, accrued expenses/ expenses payable, income received in advance/unearned income and income receivables for the current financial period prepare an extract of the Balance Sheet and Income Statement showing the presentation of prepaid expenses, accrued expenses/expenses payable, income received in advance/unearned income and income receivables for the current financial period explain the adjustments for prepaid expenses, accrued expenses/expenses payable, income received in advance/ unearned income and income receivables in relation to relevant accounting theories analyse the effects of prepaid expenses, accrued expenses/expenses payable, income received in advance/ unearned income and income receivables on current liabilities, current assets and profit for the period in the current financial period 19
20 3.3 Trade Receivables Accounting for transactions affecting trade receivables of trading business: credit sales, sales returns, cash discounts, write-off of trade receivables, receipts, dishonoured cheques, interests on late payments and off-set against trade payables Accounting for transactions affecting trade receivables of service business: services provided on credit term, refund of fees, cash discounts, write-off of trade receivables, receipts, dishonoured cheques, interests on late payments and off-set against trade payables Scenario to include: partial payment of outstanding debts Calculation and accounting of allowance for impairment of trade receivables over several financial periods Scenarios to include: (i) providing allowance for the first time, (ii) increase in allowance over prior year, and (iii) decrease in allowance over prior year A decrease in allowance is treated as a reduction against expenses in the Income Statement Accounting theories which apply to the presentation of trade receivables and allowance for impairment of trade receivables Presentation of trade receivables and allowance for impairment of trade receivables in the Balance Sheet Trade receivables represent the collections in the immediate future. Allowance for impairment loss of trade receivables is an estimate of the value of debts that may be uncollectible in the future Preparation of ledger accounts over a maximum of three financial periods prepare the journal entries of transactions affecting trade receivables prepare a trade receivable ledger account for an individual customer for the current financial period explain the purposes of accounting for allowance for impairment of trade receivables prepare the journal entries on allowance for impairment of trade receivables for a maximum of three financial periods prepare an allowance for impairment of trade receivables ledger account for a maximum of three financial periods prepare the impairment loss on trade receivables ledger accounts for a maximum of three financial periods interpret the (i) trade receivables, (ii) allowance for impairment of trade receivables, (iii) impairment loss on trade receivables for a maximum of three financial periods prepare an extract of the Balance Sheet and Income Statement showing the presentation of trade receivables, allowance for impairment of trade receivables and impairment loss on trade receivables for a maximum of three financial periods analyse the effects from changes in allowance for impairment of trade receivables and impairment loss on trade receivables and profit for the period for a maximum of three financial periods explain the accounting and presentation of trade receivables in relation to relevant accounting theories 20
21 Note: Singapore s Financial Reporting Standard 39 on trade receivable: General provision is prohibited. Hence, provision for doubtful debts which is based on a percentage of or an estimated fixed amount of trade receivables is no longer permissible. The term provision used in the FRS refers to a present obligation that arises from a past event, which therefore cannot be used in the context of reducing the amount collectible from trade receivables. Allowance for impairment of trade receivables is to be made by identifying specific customer whose debt may not be collectible in the immediate future. 21
22 3.4 Inventories Perpetual inventory recording method Accounting for purchases and sales of goods for trading business Goods are inventoried at the points of purchases and expensed as cost of sales at the points of sales Costs of purchases inventoried include the purchase price and expenses on purchase less returns Balance day adjustments on expenses on purchase, or adjustments between inventory and profit and loss are not included Adjustments to costs of purchases that will affect cost of sales and ending inventory are not included Calculation of cost of sales and ending inventory using the FIFO method only Scenario to include: (i) only one financial period, (ii) beginning inventory comprising a single batch of goods, (iii) a batch of goods described by value and quantity for the batch (iv) cost of sales is identified by FIFO method to entire batch or batches of goods, with no part apportionment of any batch Calculation of unit cost, of deriving inventory value from unit cost and quantity and recording in stock card are not required Accounting for cost of sales Goods returned from customers will not lead to return of the same goods to the supplier Presentation of sales revenue, sales returns and cost of sales in the Income Statement identify the costs of purchases prepare the journal entries on inventory at points of purchases and cost of sales at points of sales prepare the inventory ledger account for the current financial period calculate the cost of sales and ending inventory for the current financial period prepare an extract of the Balance Sheet and Income Statement showing the values and presentation of ending inventory and cost of sales for the current financial period analyse the effects of understatement or overstatement of inventory on gross profit and profit for the period for a maximum of two financial periods explain the valuation of inventory in relation to relevant accounting theories The valuation of ending inventory at the lower of cost and net realisable value Accounting for impairment loss when the net realisable value is lower than inventory value at the end of the financial period No recording of gain is permitted when net realisable value is higher than inventory value Adjustment for differences between ending inventory values derived from perpetual inventory recording method and physical inventory count arise is not required 22
23 Understatement and overstatement of inventory in the current and subsequent financial period Accounting theories which apply to the presentation of ending inventory Note: Singapore s Financial Reporting Standard (FRS) 2 states that inventories shall be measured at the lower of cost and net realisable value. This is interpreted as inventories are at the lower of cost or net realisable value. The same FRS also states that the cost of inventories shall comprise all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. 3.5 Trade Payables Accounting for transactions affecting trade payables of trading business: credit purchases of inventory, returns of goods, cash discounts, payments, freight charges and off-set against trade receivables Accounting for transactions affecting trade payables of service business: services provided on credit term, reduction of fees, cash discounts, payments, freight charges and off-set against trade receivables prepare the journal entries of transactions affecting trade payables prepare a trade payable ledger account for an individual supplier for the current financial period Scenario to include: partial payment of amount owed 23
24 3.6 Control Accounts Main purpose of control accounts (total trade receivables and trade payables accounts): independent check on the trade receivables and trade payables in the sales and purchases ledgers respectively Other purposes of control accounts How information on control accounts are derived from the special journals, general journal and cash book Accounting for transactions affecting control account for trade receivables (total trade receivables) of trading business: credit sales, sales returns, cash discounts, allowance for impairment of trade receivables, receipts, dishonoured cheques, interests on late payments and off-set against trade payables state the purposes of the control accounts state the ledger in which the control accounts are found state the sources of information for transactions recorded on the control accounts prepare the control accounts for the current financial period Accounting for transactions affecting control account for trade payables (total trade payables) of trading business: credit purchases of inventory, returns of goods, cash discounts, payments, freight charges and off-set against trade receivables 3.7 Capital and Revenue Expenditure Capital and revenue expenditure, and the respective accounting treatments specifically whether expenditure incurred in relation to non-current asset is to be capitalised as part of the non-current asset's cost or to be written-off to the Income Statement Examples of capital and revenue expenditure Application of the materiality concept on the treatment of capital and revenue expenditure define capital and revenue expenditure distinguish between capital and revenue expenditure classify accounting transactions into capital and revenue expenditure explain the application of the materiality concept on the treatment of capital and revenue expenditure analyse the effects of differences in treatments of capital and revenue expenditure on profit for the period and noncurrent assets for the current financial period 24
25 3.8 Non-current Assets Accounting for the purchases of non-current assets Scenarios to include: purchases of non-current assets by cash and on credit, and contribution of non-current assets by the owner Cost of non-current assets comprising purchase prices and the costs of bringing the non-current assets to operating condition Computing and accounting for depreciation and accumulated depreciation (depreciation to-date) according to the (i) straight-line and (ii) reducing-balance methods The suitability of depreciation methods for different classes of non-current assets Scenarios to include: part (by whole month) or full year of depreciation in the year of acquisition Accounting theories which apply to the presentation of net book value and accumulated depreciation Net book value represents the estimated future economic value of the noncurrent asset Non-current assets lose their economic values over time due to various causes Accumulated depreciation is an approximation of the reduction in economic value of the non-current asset Preparation of ledger accounts over a maximum of three financial periods prepare the journal entries on purchases of non-current assets define depreciation and accumulated depreciation state the causes of depreciation state and distinguish the depreciation methods of (i) straight-line and (ii) reducing-balance methods explain the suitability of selected depreciation method for classes of non-current assets calculate depreciation and accumulated depreciation according to the (i) straight-line and (ii) reducing-balance methods for a maximum of three financial periods prepare the journal entries on depreciation and accumulated depreciation for a maximum of three financial periods calculate the rate of depreciation, length of useful life, yearly depreciation, accumulated depreciation and cost of non-current asset analyse the effects of different depreciation methods on profit for the period for a maximum of three financial periods explain the need to charge depreciation and accumulated depreciation in relation to relevant accounting concepts explain the presentation of net book value in relation to relevant accounting theories prepare the (i) non-current asset, (ii) depreciation, (iii) accumulated depreciation ledger accounts for a maximum of three financial periods 25
26 interpret the (i) non-current asset, (ii) depreciation, (iii) accumulated depreciation ledger accounts for a maximum of three financial periods prepare an extract of the Balance Sheet and the Income Statement showing the presentation of net book value and accumulated depreciation for a maximum of three financial periods 3.9 Sale of Non-current Assets Computing and accounting for sale of non-current asset Scenarios to include: starting from purchase of one non-current asset which is subsequently sold, with or without replacement, starting from purchase of two or more non-current assets and subsequently sold one of them, with or without replacement, starting with balances in the non-current asset and accumulated depreciation ledger accounts and one of the non-current assets is sold in the current financial period, part (by whole month) or full year of depreciation in the year of purchase but no depreciation in the year of sale, either straight-line or reducing-balance depreciation methods 3.10 Long-term Borrowings Accounting for new loan, loan repayment, interest expense and accrued interest/interest payable Reclassify portion of liability payable within the next financial period as current liability Calculation of accrued interest from interest expense incurred and interest paid calculate the gain or loss on sale of non-current asset prepare the journal entries on the sale of non-current asset prepare the (i) non-current asset, (ii) depreciation, (iii) accumulated depreciation and (iv) sale of non-current asset ledger accounts in the financial period the sale happens prepare an extract of the Income Statement showing the presentation of gain or loss on sale of non-current asset distinguish between bank loan and an overdrawn cash at bank (i.e. a bank overdraft) calculate interest expense and accrued interest prepare journal entries on new loan, loan repayment, interest expense and accrued interest prepare an extract of the Balance Sheet and the Income Statement showing the presentation of loan, interest expense and accrued interest 26
27 3.11 Correction of Errors Correction of errors not revealed by the Trial Balance Errors revealed by a trial balance are not required Only one financial period Adjusted Trial Balance after correction of errors Statement of adjusted profit after correction of errors Adjusted Balance Sheet after correction of errors prepare the journal entries to correct errors analyse the effects of errors on profit for the period and on items on the Balance Sheet analyse the effects of correction of errors on profit for the period and on items on the Balance Sheet prepare an adjusted Trial Balance after correction of errors prepare a statement of adjusted profit after correction of errors prepare an adjusted Balance Sheet or an extraction after correction of errors 27
28 4. THE FINANCIAL STATEMENTS Understanding the preparation of the financial statements and the significance of financial results and status. The financial statements involved are the income statement and balance sheet only. 4.1 Balance Sheet Balance Sheet shows the financial status as at a point in time Represents the accounting equation Classification of items into non-current assets, current assets, non-current liabilities, current liabilities and equity Examples of non-current assets, current assets, non-current liabilities, current liabilities and equity Owner s equity for sole proprietor and shareholders' equity for limited company The terms net worth or capital owned are not used Only the narrative/report format of Balance Sheet Presentation details to show: non-current and current assets non-current and current liabilities details of capital of sole proprietor or details of issued share capital and retained earnings for limited company Current assets are not required to be listed in order of liquidity Include only the Balance Sheet of the following businesses: trading and service sole proprietor and limited company define Balance Sheet define and distinguish between non-current and current assets define and distinguish between non-current and current liabilities define net assets, equity and working capital calculate net assets, equity and working capital prepare a properly classified Balance Sheet for a sole proprietorship or limited company state the valuation methods for non-current assets, inventory and trade receivables on the Balance Sheet explain the valuation methods for non-current assets, inventory and trade receivables on the Balance Sheet in relation to relevant accounting theories 28
29 Basic interpretation and significance of relationships of financial figures on the Balance Sheet Only the following: sources of funds and utilisation of funds current assets, current liabilities and working capital (current assets current liabilities) equity and net assets (total assets total liabilities) changes in net assets between two points in time and the profit for the period cash in hand and cash at bank, net assets and profit for the period for a sole proprietor Understanding the relationships of financial figures on the Balance Sheet will aid in understanding Section 6 analyse the effects of accounting transactions on owner s or shareholders' equity, non-current assets, current assets, non-current liabilities, current liabilities and working capital prepare the revised Balance Sheet including transactions that occur after the statement is prepared Valuation methods used on the Balance Sheet: non-current assets at net book value, of cost less accumulated depreciation inventory at lower of cost or net realisable value trade receivables at trade receivables less allowance for impairment of trade receivables Accounting theory(ies) which apply to each valuation method 4.2 Income Statement The Income Statement shows the financial figures and profit for a period of time Represents the excess of income over expenses for a period of time Only the narrative/report format of Income Statement For trading business, the perpetual inventory recording method is adopted and details to show in the trading portion of the Income Statement are: net sales revenue (sales revenue sales returns) cost of sales gross profit/loss define and distinguish gross profit/loss and profit/loss for the period explain the purposes of the trading portion, and profit and loss portion of the Income Statement calculate net sales revenue, gross profit/loss and profit/loss for the period 29
30 Operating expenses in the profit and loss portion of the Income Statement are not required to be classified by function Include only the Income Statement of the following businesses: trading and service sole proprietor and limited company prepare an Income Statement in good form for a sole proprietorship or limited company explain the accounting of income and expenses in relation to relevant accounting theory(ies) Basic interpretation and significance of relationships of financial figures on the Income Statement Only the following: sales revenue, cost of sales and gross profit/loss gross profit/loss, expenses and profit/loss for the period sales revenue, cost of sales, expenses and profit/loss for the period Understanding the relationships of financial figures on the Income Statement will aid in understanding Section 6 Accounting theory(ies) which apply to the accounting of income and expenses on the Income Statement 4.3 Incomplete Records Capital Comparison Method Method of applying the relationship between changes in net assets between two points in time and profit for the period The accounting equation relating assets, liabilities and equity at a point in time Only for sole proprietor account prepare Balance Sheet for beginning and ending positions construct the profit for the period from changes in net assets Include only the following end of financial period adjustments: drawings not recorded during the financial period depreciation of non-current assets impairment loss on trade receivables arising during the financial period and allowance for impairment of trade receivables prepaid expenses, accrued expenses, income received in advance/unearned income and income receivables 30
PRINCIPLES OF ACCOUNTS
PRINCIPLES OF ACCOUNTS GCE ORDINARY LEVEL (SYLLABUS 7092) INTRODUCTION The syllabus aims to develop an understanding of the principles and concepts of accounting and their applications in a variety of
More informationMINISTRY OF EDUCATION
Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) ACCOUNTING SYLLABUS ORDINARY LEVEL SYLLABUS CODE: 4345 GRADES 11-12 2010 DEVELOPED IN COLLABORATION WITH UNIVERSITY
More informationLESOTHO GENERAL CERTIFICATE OF SECONDARY EDUCATION
LESOTHO GENERAL CERTIFICATE OF SECONDARY EDUCATION Lesotho General Certificate of Secondary Education Syllabus Accounting 0187 For examination in November 2018 National Curriculum Development Centre in
More informationPRINCIPLES OF ACCOUNTS 7110 GCE O Level FOR EXAMINATION IN Exclusions
PRINCIPLES OF ACCOUNTS 7110 GCE O Level FOR EXAMINATION IN 2008 Exclusions This syllabus must not be offered in the same session with any of the following syllabuses: 0452 Accounting 0614 Accounting (Botswana)
More informationIndex. Assets (continued) scrapping or disposal trading-in Auditing Profession Act 26 of
Index A Accounts balancing... 61 incomplete records... 369 Accounting balancing an account... 61 basic accounting equation... 27 cycle... 130 definition... 4, 13 developments... 5 domains... 14 function...
More informationMINISTRY OF PRIMARY AND SECONDARY EDUCATION
ZIMBABWE MINISTRY OF PRIMARY AND SECONDARY EDUCATION ACCOUNTING SYLLABUS FORMS 5-6 2015 2022 Curriculum Development Unit P.O. Box MP 133 Mount Pleasant Harare All rights reserved 2015 ACKNOWLEDGEMENT The
More informationMINISTRY OF EDUCATION
Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) ACCOUNTING SYLLABUS HIGHER LEVEL SYLLABUS CODE: 8335 GRADES 11-12 2010 DEVELOPED IN COLLABORATION WITH UNIVERSITY OF
More informationCambridge International General Certificate of Secondary Education 0452 Accounting June 2016 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education Paper 0452/11 Paper 11 Key messages Candidates should read the question carefully before attempting to answer. A label for
More informationSEC Syllabus (2020) Accounting
SEC SYLLABUS (2020) ACCOUNTING SEC 01 SYLLABUS 1 Accounting SEC 01 Syllabus (not available in September) Paper 1 (2hrs) + Paper II (2 hrs) The aims of the syllabus are to enable students: 1. To understand
More informationCambridge International General Certificate of Secondary Education 0452 Accounting June 2014 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education Paper 0452/11 Paper 11 Key Messages Question 1 consisted of ten multiple choice items covering topics across the whole syllabus.
More informationFINANCIAL ACCOUNTING PART I
PART I SECTION 1 CPA CIFA STUDY TEXT KASNEB JULY 2018 SYLLABUS Revised on: January 2019 www.someakenya.com Contact: Page 1 SYLLABUS PAPER NO 1: GENERAL OBJECTIVE This paper is intended to equip the candidate
More informationCambridge International General Certificate of Secondary Education 0452 Accounting November 2014 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education Paper 0452/11 Paper 11 Key Messages Questions can be set on any section of the syllabus and a good knowledge of all sections
More informationCambridge International General Certificate of Secondary Education 0452 Accounting June 2012 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education Paper 0452/11 Paper 11 Key Messages This question paper contained a mixture of multiple-choice, short-answer and structured
More informationSyllabus. LCCI International Qualifications. Level 1 Certificate in Book-Keeping. Effective for examinations to be held after 1 Jan 2008
LCCI International Qualifications Level 1 Certificate in Book-Keeping Syllabus Effective for examinations to be held after 1 Jan 2008 For further information contact us: Tel. +44 (0) 8707 202909 Email.
More informationClass: XI Subject: ACCOUNTANCY. NO OF PERIOD Unit-1 (25 periods) LEARNING OUTCOMES
Unit-1 (25 CH-1. Introduction to Accounting - Project on Accounting: objectives, advantages and International limitations, types of accounting information; Accounting users of accounting information and
More informationCambridge International General Certificate of Secondary Education 0452 Accounting November 2011 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education www.xtremepapers.com Paper 0452/11 Paper 11 Key messages This question paper contained a mixture of multiple-choice, short
More informationFinancial Accounting (FA)/FFA September 2018 to August 2019
Financial Accounting (FA)/FFA September 2018 to August 2019 Guide to structure of the syllabus and Study guide This syllabus and study guide are designed to help with teaching and learning and is intended
More informationFinancial Accounting. Sample Paper 1 Questions & Suggested solutions. Financial Accounting Sample Paper 1 Page 1 of 26
Financial Accounting Sample Paper 1 Questions & Suggested solutions Financial Accounting Sample Paper 1 Page 1 of 26 NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians
More informationExecutive Level. Financial Accounting & Reporting Fundamentals. (3) Section 1(a): 10 multiple choice questions (MCQs) all questions are compulsory.
Copyright Reserved No. of pages: 14 Executive Level Financial Accounting & Reporting Fundamentals Instructions to candidates (1) Time allowed: Reading and planning 15 minutes Writing 3 hours (2) Total:
More informationCENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationStrictly Based on the Latest Syllabus issued by CBSE Board for 2015 Examination QUESTION BANK. Chapter-Wise Solutions. Accountancy
Strictly Based on the Latest Syllabus issued by CBSE Board for 2015 Examination QUESTION BANK Chapter-Wise Solutions Accountancy Includes KVS Paper, 2014 Class XI Published by : OSWAAL BOOKS Oswaal House
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Rights Reserved Index No No. of Pages - 12 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I (INTAKE VI GROUP A)
More informationStudent s Book. Financial
FET FIRST NATED Series Financial Accounting N4 Student s Book R. Eyssen FET FIRST NATED Series Financial Accounting Student s Book R. Eyssen, 2012 All rights reserved. No part of this publication may be
More informationBixby Public Schools Essential Elements Grade: 10-12
Course: Accounting Essential Elements Grade: 10-12 Weeks 1-6 Chapter 1 describes how a proprietorship is started & the transactions that occur when the business is organized. The accounting equation is
More informationPRINCIPLES OF ACCOUNTS
PRINCIPLES OF ACCOUNTS Paper 7110/11 Paper 11 Question Number Key Question Number Key 1 B 16 B 2 C 17 B 3 D 18 D 4 C 19 A 5 B 20 B 6 B 21 A 7 C 22 D 8 D 23 A 9 B 24 B 10 A 25 C 11 D 26 D 12 A 27 C 13 C
More informationIAB LEVEL 2 CERTIFICATE IN MANUAL AND COMPUTERISED BOOKKEEPING (QCF)
CONTENTS IAB LEVEL 2 CERTIFICATE IN MANUAL AND COMPUTERISED BOOKKEEPING (QCF) Qualification Accreditation Number 601/3789/7 (Accreditation review date 31 st December 2016) QUALIFICATION SPECIFICATION Introduction
More informationCambridge International General Certificate of Secondary Education 0452 Accounting November 2012 Principal Examiner Report for Teachers
ACCOUNTING Cambridge International General Certificate of Secondary Education Paper 0452/11 Paper 1 Key Messages This question paper contained a mixture of multiple-choice, short-answer and structured
More informationSHUN LEE CATHOLIC SECONDARY SCHOOL BUSINESS, ACCOUNTING AND FINANCIAL STUDIES SCHEME OF WORK
SHUN LEE CATHOLIC SECONDARY SCHOOL 2011-2012 BUSINESS, ACCOUNTING AND FINANCIAL STUDIES SCHEME OF WORK Classes Teachers Textbook : S4C & E2 : Mr. LAU Tsz Kin, Ms. LEUNG Kwan Yee Carol : Business Environment
More informationACCOUNTS (858) CLASS XI
ACCOUNTS (858) Aims: 1. To provide an understanding of the principles of accounts and practice in recording transactions and interpreting individual as well as company accounts. 2. To develop an understanding
More informationBUSA PRACTICAL ACCOUNTING I/II Entiat High School
BUSA 102 - PRACTICAL ACCOUNTING I/II Student Entiat High School 2010-2011 Cycle 1 1 Define and identify asset, liability, and owner s equity accounts. 1.1 2 Define a fiscal period and a fiscal year. 1.1
More informationElective Part -- Accounting Module 2(a) Financial Accounting
Suggested Revised BAFS Curriculum Draft as at 30 January 2013 Elective Part -- Accounting Module 2(a) Financial Accounting Topic Books of Original Entry and Types of Ledgers Explanatory Notes (original
More informationFANLING LUTHERAN SECONDARY SCHOOL
FANLING LUTHERAN SECONDARY SCHOOL 2012 2013 2 nd Term Examination S.5 BUSINESS, ACCOUNTING AND FINANCIAL STUDIES Accounting Module Date : 20th June, 2013 Time allowed: 8:30 am - 11:00 am (2 hour 30 minutes)
More informationI PUC ACCOUNTANCY SYALLABUS
I PUC ACCOUNTANCY SYALLABUS 2013-14 SL NO. OBJECTIVES UNIT OR CHAPTER SUB TOPICS NO. OF TEACHING HOURS LEARNING OUT COMES EVALUATION ACTIVITI ES 1. To enable the students to acquire knowledge of basic
More informationINTRODUCTION TO FINANCIAL ACCOUNTING
INTBUS NOVEMBER 2013 EXAMINATION DATE: 6 NOVEMBER 2013 TIME: 09H00 11H00 TOTAL: 100 MARKS DURATION: 2 HOURS PASS MARK: 40% (IFA-01) INTRODUCTION TO FINANCIAL ACCOUNTING THIS EXAMINATION PAPER CONSISTS
More informationICAN MID DIET LIVE CLASS FOR MAY DIET 2015 FINANCIAL ACCOUNTING Introduction to financial accounting Recording non-current assets and depreciation
ICAN MID DIET LIVE CLASS FOR MAY DIET 2015 FINANCIAL ACCOUNTING Introduction to financial accounting Recording non-current assets and depreciation Compiling financial statement Compiling financial statement
More informationUNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education *6351257674* ACCOUNTING 0452/13 Paper 1 October/November 2010 Candidates answer on the Question
More informationAccounting Glossary 1. an equation showing the relationship among assets, liabilities, and
Accounting Glossary 1 GLOSSARY A Account a record summarizing all the information pertaining to a single item in the accounting equation. (p. 10) Account balance the amount in an account. (p. 10) Account
More informationSTATE COUNCIL OF EDUCATIONAL RESEARCH AND TRAINING TNCF DRAFT SYLLABUS
STATE COUNCIL OF EDUCATIONAL RESEARCH AND TRAINING TNCF 2017 - DRAFT SYLLABUS Subject :Accountancy Class : XI Unit 1 : TOPIC Introduction To Accounting CONTENT Evolution of Accounting; Meaning and Definition
More informationFinancial Accounting (F3/FFA) February 2013 to January 2014
Financial Accounting (F3/FFA) February 2013 to January 2014 This syllabus and study guide is designed to help with teaching and learning and is intended to provide detailed information on what could be
More informationCBA Model Question Paper CO2. The difference between an income statement and an income and expenditure account is that
CBA Model Question Paper CO2 Question 1 The difference between an income statement and an income and expenditure account is that A an income and expenditure account is an international term for a Income
More informationPELLISSIPPI STATE TECHNICAL COMMUNITY COLLEGE MASTER SYLLABUS PRINCIPLES OF ACCOUNTING I ACC 2110
PELLISSIPPI STATE TECHNICAL COMMUNITY COLLEGE MASTER SYLLABUS PRINCIPLES OF ACCOUNTING I ACC 2110 Class Hours: 3.0 Credit Hours: 3.0 Laboratory Hours: 0.0 Date Revised: Fall 1999 Catalog Course Description:
More informationDawood Public School Course Outline Principles of Accounts Class IX
Dawood Public School Course Outline 2017-18 Principles of Accounts Class IX Cambridge O level Principles of Accounts Syllabus Code 7110 Course Books: 1. Wood, Frank, Business Accounting, FT Pitman Publishers
More informationACCOUNTING Accounting June 2003
www.xtremepapers.com ACCOUNTING... 2 Paper 0452/01 Multiple Choice... 2 Paper 0452/02 Paper 2... 3 Paper 0452/03 Paper 3... 8 1 Paper 0452/01 Multiple Choice Question Number Key Question Number 1 D 21
More informationAccounting Definitions. Definitions
Accounting Definitions Definitions What s Here Introduction Definitions Introduction This training contains definitions of common accounting terms. If you come across accounting or financial terms with
More informationMARK SCHEME for the October/November 2014 series 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120
CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November series 0452 ACCOUNTING 0452/23 Paper 2, maximum raw mark 120
More informationInstitute of Certified Bookkeepers
Making you count Institute of Certified Bookkeepers Level III Certificate in Bookkeeping and Accounting Syllabus ICB Syllabus Level III Certificate in Bookkeeping and Accounting 1 Level III Certificate
More informationCOMPOSED BY SADIA ALI SADI (MBA)
Mega File MGT101 Fall 2011 Question No: 7 ( Marks: 1 ) - Please choose one Which of the following business publishes the Financial Statements? Sole-Proprietorship Partnership Trust Public Limited Company
More informationKULLEĠĠ SAN BENEDITTU Secondary School, Kirkop HALF YEARLY EXAMINATION 2015/2016. Question A B C D Global Mark. Max. Mark
KULLEĠĠ SAN BENEDITTU Secondary School, Kirkop Mark HALF YEARLY EXAMINATION 2015/2016 FORM 4 ACCOUNTING TIME: 1h 30min Question A B C D Global Mark Max. Mark 10 14 40 36 100 Mark Instructions to students:
More informationSyllabus. Cambridge O Level Principles of Accounts Syllabus code 7110 For examination in June and November 2013
Syllabus Cambridge O Level Principles of Accounts Syllabus code 7110 For examination in June and November 2013 Contents Cambridge O Level Principles of Accounts Syllabus code 7110 1. Introduction... 2
More informationACCOUNTING... 2 SRIGCSGPOVIN0201 Group V Creative, Technical and Vocational
SRIGCSGPOVIN0201 www.xtremepapers.com Group V Creative, Technical and Vocational ACCOUNTING... 2 Paper 0452/01 Paper 1 - Multiple Choice... 2 Paper 0452/02 Paper 2... 3 Paper 0452/03 Accounting... 8 1
More informationLondon Examinations GCE
Paper Reference(s) 6001/01 London Examinations GCE Accounting (Modular Syllabus) Advanced Subsidiary/Advanced Level Unit 1 The Accounting System and Costing Tuesday 17 May 2011 Morning Source booklet for
More informationUnit 3 Accounting. Practice Exam Question Booklet. A non-profit organisation supporting students to achieve their best.
A non-profit organisation supporting students to achieve their best. Practice Exam Question Booklet Duration: 15 minutes reading time, 90 minutes writing time Structure of book: Number of questions Number
More informationPRINCIPLES OF ACCOUNTS
PRINCIPLES OF ACCOUNTS Paper 7110/11 Multiple Choice Question Question Key Number Number Key 1 D 16 C 2 C 17 A 3 C 18 C 4 B 19 C 5 D 20 D 6 A 21 C 7 A 22 A 8 D 23 D 9 C 24 B 10 C 25 B 11 A 26 A 12 B 27
More informationCambridge International Examinations Cambridge International General Certificate of Secondary Education. Published
Cambridge International Examinations Cambridge International General Certificate of Secondary Education ACCOUNTING 0452/22 Paper 2 October/November MARK SCHEME Maximum Mark: 120 Published This mark scheme
More informationFinancial procedures manual
Contents Introduction... 2 Finance authorisation procedure... 2 Bank account procedure... 3 Petty cash procedure... 4 Use of business credit card procedure... 5 New supplier procedure... 6 New customer
More informationBasic Understanding of the Accounting Industry: Basic Understanding of the Accounting Industry:
Texas University Interscholastic League Contest Event: Accounting The contest focuses on the elementary principles and practices of accounting for sole proprietorship, partnerships and corporations, and
More informationFundamentals of Accounting Resources
Contents Figure 1 - The Profit and Loss statement example... 2 Figure 2 - Balance sheet example... 3 Figure 3 - Example of a Balance Sheet... 4 Figure 4 - Example of a Profit & Loss Sheet... 5 Figure 5-10
More informationFinancial Accounting
Drawings Assets expenses Capital Income Liabilities - Drawings - Capital - Assets - Income - Expenses - Liabilities Dt (Increases) Cr (Increases) Cr (decreases) Dt (decreases) Financial Accounting Financial
More informationDawood Public School. Course Outline for Principles of Accounts. Class X
Cambridge O Level Principles of Accounts Syllabus Code 7110 Course Books: Dawood Public School Course Outline for 2013-2014 Principles of Accounts Class X 1. Wood, Frank, Business Accounting, FT Pitman
More information0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120
CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2013 series 0452 ACCOUNTING 0452/11 Paper 1, maximum raw mark 120 This mark scheme
More informationComposed & Solved Hafiz Salman Majeed
FINALTERM EXAMINATION Fall 2008 MGT101- Financial Accounting (Session - 4) Question No: 1 ( Marks: 1 ) - Please choose one Wages outstanding given in the trial balance will be treated as a (an): Asset
More informationCOMSATS Institute of Information Technology Abbottabad
COMSATS Institute of Information Technology Abbottabad Department of Management Sciences Terminal Section A: Spring 2017 Class: BBA 2 Date: 21-07-2017 Subject: Accounting I Instructor: Zaheer Swati Time
More informationCS101 Introduction of computing
FINAL TERM EXAMINATION MGT101- Financial Accounting (PAPER 1). Question No: 1 (Marks: 1 ) basic accounting principle/concept according to which Business is independent from its owner(s) is known as: Separate
More informationVCE ACCOUNTING CLARIFICATION OF METHODS What terminology is going to be used in the June and November examinations in 2004?
VCE ACCOUNTING CLARIFICATION OF METHODS 2003 2006 What terminology is going to be used in the June and November eaminations in 2004? Terms to be used in eaminations Terms that will not be used in eaminations
More informationGrade XI. Accountancy. (Important Concepts) #GrowWithGreen
Grade XI Accountancy (Important Concepts) #GrowWithGreen Financial Accounting [Part-I] Chapter 1 (Introduction to Accounting) 1. Difference between Book-Keeping, Accounting and Accountancy 2. Users of
More informationMARK SCHEME for the May/June 2012 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2012 question paper for the guidance of teachers 0452 ACCOUNTING
More informationFINANCIAL STATEMENTS: INCOME STATEMENT & ASSET DISPOSAL 08 AUGUST 2013
FINANCIAL STATEMENTS: INCOME STATEMENT & ASSET DISPOSAL 08 AUGUST 2013 Lesson Description In this lesson we: Focus on income statement adjustments and calculating profit/loss on sale of asset. Questions
More informationSyllabus Cambridge IGCSE Accounting Syllabus code 0452 For examination in June and November 2012
www.xtremepapers.com Syllabus Cambridge IGCSE Accounting Syllabus code 0452 For examination in June and November 2012 Contents Cambridge IGCSE Accounting Syllabus code 0452 1. Introduction... 2 1.1 Why
More informationActivity to Develop and Demonstrate Competence. Describe the nature, scope and purposes of financial statements and their related records and accounts
Paper 1 Financial Accounting Aim This paper aims at testing students understanding of the basic accounting principles, and their ability to apply concepts of financial accounting and methods to record
More informationNew_SA_GAAP Planning by Reviewed Performed by Final review 11.15
1. General 1.1. A balanced trial balance 1.2. Draft financial statements 1.3. Copies of minutes and resolutions not yet pasted into the minute books including those in the process of being signed. Statutory
More informationCambridge International Examinations Cambridge International General Certificate of Secondary Education. Published
Cambridge International Examinations Cambridge International General Certificate of Secondary Education ACCOUNTING 0452/12 Paper 1 May/June 2016 MARK SCHEME Maximum Mark: 120 Published This mark scheme
More informationMARK SCHEME for the October/November 2014 series 0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120
CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2014 series 0452 ACCOUNTING 0452/11 Paper 1, maximum raw mark
More informationIAB LEVEL 2 CERTIFICATE IN APPLIED BOOKKEEPING (QCF)
IAB LEVEL 2 CERTIFICATE IN APPLIED BOOKKEEPING (QCF) Qualification Accreditation Number 500/9262/5 (Accreditation end date 31 st December 2012) CONTENTS QUALIFICATION SPECIFICATION 1. Introduction 2. Aims
More informationGrade XI Accountancy. (Important Concepts) #GrowWithGreen
Grade XI Accountancy (Important Concepts) #GrowWithGreen Financial Accounting [Part-I] Chapter 1 (Introduction to Accounting) 1. Difference between Book-Keeping, Accounting and Accountancy 2. Users of
More informationFinancial Accounting. Sample Paper / 2018 Questions & Suggested Solutions
Financial Accounting Sample Paper 2 2017 / 2018 Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended to provide
More informationPrinciples of Accounting II
Principles of Accounting II Lecture 1 Adjusting the Accounts Basic Accounting Equation What the business owns = What the business owes Assets = Liabilities (owed to creditors)+ Owners Equity (residual
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Rights Reserved No. of Pages - 12 No of Questions - 06 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I (INTAKE VI GROUP B) END SEMESTER
More informationIAB LEVEL 2 AWARD IN MANUAL BOOKKEEPING (QCF)
IAB LEVEL 2 AWARD IN MANUAL BOOKKEEPING (QCF) CONTENTS Qualification Accreditation Number 601/0480/6 (Accreditation review date 31 st December 2017) QUALIFICATION SPECIFICATION Introduction 1. Aims 2.
More informationTwin Valley School District. What is the purpose and importance of accounting? Who are the users of accounting information?
Twin Valley School District Subject/Course: Advanced Accounting Course Objective: Students need to become familiar with financial accounting information and reports in order to make financial decisions.
More informationNATIONAL 5 Accounting
MADRAS COLLEGE FACULTY OF TECHNOLOGIES DEPARTMENT OF BUSINESS AND ENTERPRISE NATIONAL 5 Accounting Course Information Name: ACCOUNTING NATIONAL 5 COURSE AIMS AND STRUCTURE The course aims to enable learners
More informationMANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING Accounting: The Language of Business Accounting - a process of identifying, recording, summarizing, and reporting economic information to decision makers in the form of financial
More information2010 Accounting GA 1: Written examination 1
Accounting GA 1: Written examination 1 GENERAL COMMENTS The June examination comprised of two 45-mark questions, with multiple parts to each question. Each question presented a business scenario which
More informationAccounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
More informationFINALTERM EXAMINATION Fall 2008 MGT101- Financial Accounting (Session - 1)
FINALTERM EXAMINATION Fall 2008 MGT101- Financial Accounting (Session - 1) Question No: 1 ( Marks: 1 ) - Please choose one Debenture is also named as: Share Bond Equity Reserve Question No: 2 ( Marks:
More informationIntermediate Financial and Management Accounting
Intermediate Financial and Management Accounting Course map This document outlines the course structure. ACCA: FA2-MA2.X Intermediate Financial and Management Accounting Intermediate course orientation
More informationCOMSATS Institute of Information Technology Abbottabad
COMSATS Institute of Information Technology Abbottabad Department of Management Sciences Terminal Section A: Spring 2017 Class: BBA 2 Date: 21-07-2017 Subject: Accounting I Instructor: Zaheer Swati Time
More informationCambridge Assessment International Education Cambridge International General Certificate of Secondary Education. Published
Cambridge Assessment International Education Cambridge International General Certificate of Secondary Education ACCOUNTING 045/ Paper MARK SCHEME Maximum Mark: 0 Published This mark scheme is published
More informationMTP_ Intermediate _Syllabus 2012_Dec2016_Set 1 Paper 5- Financial Accounting
Paper 5- Financial Accounting Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 5- Financial Accounting Full Marks : 100 Time allowed:
More informationPRINCIPLES OF ACCOUNTS 2013-AL-P ACCT
PRINCIPLES OF ACCOUNTS 2013-AL-P ACCT ADVANCED LEVEL OBJECTIVES The examination aims to test the candidates abilities to: 1. demonstrate knowledge of accounting procedures and practices and an understanding
More informationBOOKS OF ORIGINAL ENTRIES
BOOKS OF ORIGINAL ENTRIES These are the books of first entry. The transactions are first recorded in these books before being entered in the ledger books. These books are also called as books of Prime
More informationAccounting Technicians Ireland First Year Examination: Autumn 2016 Paper: FINANCIAL ACCOUNTING Tuesday 9 August a.m. to p.m.
Accounting Technicians Ireland First Year Examination: Autumn 2016 Paper: FINANCIAL ACCOUNTING Tuesday 9 August 2016 9.30 a.m. to 12.30 p.m. INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY Candidates
More information1 st Year Examination : Summer FINANCIAL ACCOUNTING l NEW SYLLABUS. PAPER, SOLUTIONS and EXAMINERS REPORT
1 st Year Examination : Summer 2009 FINANCIAL ACCOUNTING l NEW SYLLABUS PAPER, SOLUTIONS and EXAMINERS REPORT NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting
More informationMARK SCHEME for the October/November 2013 series 0452 ACCOUNTING. 0452/13 Paper 1, maximum raw mark 120
CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November 2013 series 0452 ACCOUNTING 0452/13 Paper 1, maximum raw mark 120 This
More informationLook at Chapter 2 of Horngren. Make sure that you understand and can describe the following:
Week 1 Revise the introduction to Financial Accounting from CMA100, Chapters 1 and 2, Horngren and then look at Week 1 s topic The Adjusting Process, Chapter 3. Look at Chapter 1 of Horngren. Make sure
More information(AA11) FINANCIAL ACCOUNTING BASICS
All Rights Reserved ASSOCIATION OF ACCOUNTING TECHNICIANS OF SRI LANKA AA1 EXAMINATION - JANUARY 2017 (AA11) FINANCIAL ACCOUNTING BASICS Instructions to candidates (Please Read Carefully): (1) Time allowed:
More informationChapter 2 Review of the Accounting Process
Chapter 2 Review of the Accounting Process QUESTIONS FOR REVIEW OF KEY TOPICS Question 2 1 External events involve an exchange transaction between the company and a separate economic entity. For every
More informationMCA (Sem-1) Theory Examination, Accounting and Financial Management. Section - A
MCA (Sem-1) Theory Examination, 2016-17 Accounting and Financial Management Section - A a) Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such as
More informationFinancial Accounting. Sample Paper 3 Questions & Suggested Solutions. Page 1 of 31
Financial Accounting Sample Paper 3 Questions & Suggested Solutions Page 1 of 31 NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended to provide
More informationExample Candidate Responses
Example Candidate Responses Cambridge O Level Principles of Accounts 7110 Cambridge Secondary 2 In order to help us develop the highest quality Curriculum Support resources, we are undertaking a continuous
More informationCentury 21 Accounting, 9e Multicolumn Journal Chapter Outlines
Century 21 Accounting, 9e Multicolumn Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
More information